Chilled Food Category Overview
26th May 2014
Growing the success of Irish food & horticulture
Category Overview – Chilled foods at a glance…
Salads and Sandwich Fillers reflect more frequent purchase – not surprising due to
their ‘fresh’ credentials. Habitual frequent purchasing across chilled food in general,
with growth in salads and fillers identified.
Chilled Food Category – what does it mean to consumers
•
The aisle is shopped not the category
– Consumers are shopping by meal or occasion or
generally ‘shopping the aisle’.
– Generally easy to shop – some level of browsing
and dwell time occurs – namely to review price
and best before dates
•
– Range and choice within chilled has expanded
greatly – in many instances consumers are
overwhelmed by offerings from private labels to
brands.
– Cuisines, dishes, new ingredients, preparation
methods are constantly changing adding dynamism
and engagement to the category
Ready meals and Soups have loads of
different options and varieties
nowadays – its changed a good bit over
the last few years; you can really get
anything for any meal or anyone in the
family
•
I love this section in Sainsbury's, its all
laid out so well and the food looks
great even if it is packaged.
3
An evolving category
Retailers up their game
– Consumers see an improved shopper experience in
chilled from supermarkets
– Shops own brands are highly visible and offer the
best value for many consumers
– Level of promotion is salient and products are
frequently purchased on promotion
Chilled Food Category – what does it mean to consumers
•
What is Chilled Food?
– Chilled means anything that goes in the fridge when you get home,
including dairy & eggs.
•
Category has the benefit of consumer trust
– Associations with the category are broadly positive with
FRESHNESS is core benefit.
– Consumers see the strong advantages over frozen from taste.
– Expectations can be high as a consequence- making quality,
nutrition and health important underlying factors.
• Levels of engagement across the sub-categories differ
I don’t make a list for
chilled food, its all in
the same area in the
supermarket
anyway…I’d always
have ready meals,
soups, leaves and the
odd dessert in my
trolley.
4
– Frequency of purchase and occasion can determine consumer
interest.
Low
High
Packaging fundamentals for Chilled Foods
• Chilled food like other FMCG’s need to
deliver on the fundamentals of good
packaging:
Strong,
secure
durable
materials
Good food photography
appetite appeal
5
Good design and
branding cues
Food
visibility
Is it
Convenient?
• Packaging should not undermine their
convenience. It needs to be:
– Easy to store and stack in
fridge/freezer,
– Easy to open
– Easy to prepare for cooking
– Easy to dispose of
Packaging fundamentals for Chilled Foods
Chilled Ready Meals
Visibility of food – the ability to see
what the food looks like.
Good appetite appeal via strong food
photography
Separate food compartments to avoid
food mixing
Chilled Soup
Tetra and Pots are the desired
market norms – both with specific
advantages
Functional & practical elements need
to be adhered to:
- Ease of opening and reseal is key
Use of vibrant colours cues to health
and freshness
Transparency is important so
consumers can assess ingredient
quality and freshness (and levels of
sauce)
Ease of opening and maintaining
freshness is important
Look at ‘on the go’ solutions
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Sandwich Fillers
Deli cues may appeal – other
premium materials such as cardboard
may add difference
Packaging fundamentals for Chilled Foods
Chilled Desserts
Highlight the indulgent treat nature of desserts by allowing total
product visibility
Pre-Prepared salad
Visibility of “leaves” freshness is key
Maintenance of freshness after opening is desired
Showcase complexity by layering, texturing and decoration
Single serves can appeal to smaller households to avoid wastage
Packaging should reflect restaurant styling, so consumers see that
they could not replicate at home
Ease of serve and presentation should be maintained when out of
packaging
7
Ready Meals
26th May 2014
Growing the success of Irish food & horticulture
Who buys Ready Meals?
ROI profile is spread across demographics. UK ready meal purchasers skew to
45+ and without dependent children.
Who are they buying for?
Ready Meals are not just the preserve of single unit/couple households. Ready
Meals are purchased for family consumption. Opportunity to develop new serve
size and packaging SKU’s for family orientated Ready Meal occasions.
Frequency of purchase
Type of purchase experience suggests that Ready Meals can be positioned
across all store types from convenience, multiples and discounters. Relatively
narrow window of acceptable price – any lower, consumers question quality.
Level of promotion in the UK results in more price sensitivity.
Purchase Behaviour: How many Ready Meals purchased every week?
Stocking up behaviour is evident with freezing for later use.
Consumers acknowledge a threshold of consumption, mainly due to health concerns.
Males have a higher propensity to purchase in both markets.
Occasions: When do people eat Ready Meals?
Dinner occasions dominate during the week. Often eaten with other
accompaniments. Opportunity to develop serving suggestions by offering a
more complete meal solution enhancing their convenience.
What’s important when buying Ready Meals?
Convenience is the key driver and covers multiple dimensions. Ease of use, time
saving and flexibility all need to be present from product, packaging and messaging.
What's important for the consumer when choosing Ready Meals?
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
15
What's important for the consumer when choosing Ready Meals?
Consumers want
reassurance that
counter the
negative
dimensions of
ready meals and
establishing TRUST
is key via
Irishness,
Traceability and
Price
Irish ingredients
rather than cuisine
has potential to be
more motivating
Traceability is not
actively sought but
expected from the
price paid, packaging
and quality cues.
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Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
Packaging (outer and
inner), food photography
& food visibility all need
to support Quality,
Irishness and Taste
Price is a delicate
balance between being
too expensive and
undermining
convenience & being
too cheap, so quality is
questioned
Taste is key – and all
dimensions of the
Ready meal should
focus on delivering
good taste associations
whether through
presentation,
packaging or
messaging.
Gaps and Opportunities – Ready Meals
Private vs. Branded
• Establishing a stand alone brand that will be considered superior to midrange/premium own brand offerings will be very challenging. Gaining visibility or
shelf space vs. private label will be difficult. Consumer experience and preference
is weighted towards private label offering. What can your brand provide that is
unique and different to the supermarket own brands?
Drivers into the category
• Mandatories for ready meals include ease and convenience – this has to be right
and on a par with competitor offerings. Taste is critical and underpins preference
and repeat purchase. Delivering on range and variety for ready meals is key,
along with strong taste credentials – all touchpoints need to dial up the taste
aspect. Price and quality are interchangeable and consumers expect a certain
standard at varying price points.
Irish Ingredients
• Focussing on Irish ingredients rather than cuisine will present more of an
opportunity. Irish ingredients as a core component will communicate quality,
transparency and health/good food choice.
17
Chilled Soup
26th May 2014
Growing the success of Irish food & horticulture
Who buys Chilled Soup?
Strong female, 30+ bias towards Chilled Soup in both markets. Opportunity for 45+ age
group in UK. Soups are potentially used as a meal replacement in small households.
Who are they buying for?
Chilled Soups are frequently bought for own consumption and can be used
across more than one food occasion. More family bias in UK – how can your
brand’s serve size meet these needs?
Frequency of purchase
40%
33%
1%
66%
55%
5%
More frequent purchase and more likely to be part of a pre-planned purchase
in ROI. Lower price threshold in UK. Little concerns over the amount of
Chilled Soup purchased as it is seen as a ‘good/healthy’ choice.
Purchase Behaviour: How many Chilled Soup purchased every week?
A regular part of shoppers purchasing every week. About 1 in 5 purchase more than
once a week. Under 35 in UK more likely to purchase chilled soup more than twice
a week.
Occasions: When do people eat Chilled Soup?
Lunch is the key occasion for Chilled Soup. Although eaten frequently with
bread it is seen as a convenient alternative to pre-made sandwiches. About 1 in
10 consume it as part of a weight management plan – It’s healthy ‘filling’
credentials see it positioned as a credible alternative for those who diet.
What’s important when buying Chilled Soup?
Convenience, quick preparation and taste are key drivers to purchase frequency. The
dominance of the lunchtime occasion means that speed and ease of preparation is a must.
What's important for the consumer when choosing Chilled Soup?
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
25
What's important for the consumer when choosing Chilled Soup?
Less of a
driver/issue – as
chilled benefits from
positive health
perceptions
Branded offerings are
strong in the category
which denote quality
and taste advantage
over some shops own
varieties
Taste descriptors,
ingredients, colours,
size of food
pieces/chunks all create
strong triggers to
purchase
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Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
Similar to Ready
Meals – convenience
is key. With the
dominance of the
lunch occasion;
speed and ease of
preparation is
important
More price sensitivity –
as it is not the main
meal – price thresholds
will prevail. Also seen
as less suitable for
‘feeding ‘ the family
Taste, flavours and
ingredients are key
drivers.
Consumers are drawn to
the category due to the
freshness of the product
Gaps and Opportunities – Chilled Soup
• Opportunity for dialling up “Irish” credentials in chilled soup. The category benefits
from many positive associations (e.g. hearty, comforting, flavoursome) that overlap with Irish
food. A distinct Irish positioning may be motivating for consumers e.g. Irish ingredients that
cue to freshness and quality rather than specific Irish cuisine
• Scope to explore chilled soup as a meal replacement. More wholesome offer to
substitute for different meal occasions, with the potential to include hearty filling ingredients
that offer more of a mini meal solution.
• Less barriers are apparent in chilled soup, the product is seen as the best “quality” version
of the category (i.e. better version of soup vs. ambient or pouch variants etc.). This creates
an expectation on taste that must be met as a category mandatory.
• A branded offer can achieve stand-out, however the competitive set are strong and well
established. Delivering on taste and good range will be critical, while also supporting a
brand in a cluttered fixture.
• The blended nature of soups means that innovative flavours and different cuisine types
can be tolerated more. Explore how unusual ingredients or soup types can be developed to
meet more adventurous tastes and tap into popular trends?
27
Chilled Desserts
26th May 2014
Growing the success of Irish food & horticulture
Who buys Chilled Desserts?
ROI over index on dependent children and the category as a whole has a more
female skew. Directly targeting these cohorts is recommended.
Who are you buying for?
Family purchase in ROI is popular, while UK reflects a broader customer target.
Necessary to ensure Chilled Desserts offer has a broad appeal and potentially
caters for family size serves in ROI?
Frequency of purchase
62%
48%
38%
2%
50%
Impulse dominates in ROI, while UK buy a higher number of desserts vs. ROI at
a lower price point. Clear opportunity to engage and interact with the shopper
on a regular basis
Purchase Behaviour: How many Chilled Desserts purchased
every week?
Heavy frequent purchase, with scope and opportunity to interact with shoppers on a
regular basis at the fixture. Ensuring your offer is compelling and appetising at the
fixture is critical.
Occasions: When do people eat Chilled Desserts?
Not surprisingly treat and dinner time are key moments for Chilled Desserts.
Single serves will play well for indulgent “me-time” moments, while scope to
offer “family” portions has potential.
What’s important when buying Chilled Desserts?
Taste and being easier to buy rather than make a core influence in Chilled Desserts.
Dial up complexity of desserts and potentially hard to source/premium ingredients.
What's important for the consumer when choosing
Chilled Desserts?
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
35
What's important for the consumer when choosing Chilled Desserts?
For the majority of
consumers they trade off
health concerns in light of
a treat or indulgent
moment. Some desire a
healthy/low cal dessert but
few are seen to deliver on
taste in this arena
Avoiding manufactured,
processed look and feel is
essential – too perfect or rigid
and the home made feel is lost
Hero the product – packaging
needs to dial up sensory cues
that talk to its rich and
indulgent nature. The product
requires some visibility either
through transparent packaging
or high quality imagery.
36
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
Desserts typically seen as
time-consuming and one of
the more complex meal
preparations. Chilled
desserts can outperform
made from scratch variety.
Consumers have confidence
in the bought end product.
Dialling up their complex
artisan and skilled
dimension will promote
purchase.
Its treat nature and indulgent
cues means consumers are less
price sensitive compared to
other categories. Portion size
to price will be a consideration
for families, particularly on
weekday occasions.
Competitive landscape is
anything sweet so dessert types
need to be varied and offer a
‘special’ element that shows its
advantage over other dessert
options.
Gaps and Opportunities – Chilled Desserts
• Branded opportunity may be limited in larger retailers, where both Private and
established branded offerings are strong. A competitive cluttered brand
landscape exists and your brand needs to strongly deliver on the core drivers to
cut through. Developing more complicated dessert ranges that are difficult to
replicate at home can be a strong trigger to purchase.
• ROI presents more of an impulse purchase opportunity. Being disruptive at the
point of purchase with engaging ranges strong packaging and an appetising product
will appeal.
• ‘Looks appetising’ is a key driver for the category and packaging and
presentation need to deliver against.
• Puddings and desserts have a strong heritage in the UK – “re-invention” of
classics or traditional pudding may offer a potential opportunity to stand out.
UK have more solus/partner occasions and ensuring that SKU’s and packaging
formats are tailored to these occasions will be important
37
Pre-Prepared Salads
26th May 2014
Growing the success of Irish food & horticulture
Who buys Pre-Prepared Salads
Skew females family, and white collar in ROI, while UK
reflects a more balanced profile.
Who are they buying for?
Solo and family purchasing strong in ROI, while UK steers
to more single or couple purchasing.
Frequency of purchase
25%
5%
70%
78%
18%
4%
Planned routine purchase for the majority, much lower
price point experienced in the UK.
Purchase Behaviour: How many Pre-Prepared Salad purchased
every week?
The majority of consumers in both markets (over 3 in 4) purchase pre-prepared
salads 2-3 times a week. Due to the ‘fresh’ nature of the product this provides
ample opportunity for interaction at the fixture.
Occasions: When do people eat Pre-Prepared Salads?
Dinner and lunch occasions dominate in both markets. Dinner is more dominant
in the UK – more likely pre-prepared salads are a meal accompaniment.
Is there scope to tailor offers accordingly?
What’s important when buying Pre-Prepared Salad?
Convenience of pre-prepared salad is essential for driving
purchase, particularly in the UK.
What's important for the consumer when choosing
Pre-Prepared Salad?
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
45
What's important for consumers when choosing
Pre-Prepared Salad?
Although consumers are
aware of preserved
gases used in packaging.
Pre-prepared salad
leaves unsurprisingly
have strong health
associations
Leaves staying fresh for
longer denotes quality and
stand out as this is a
product issue that irritates
Visibility of ingredients is
key with consumers
assessing the freshness of
ingredients at point of
purchase
46
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
Seen as convenient
alternative to home
prepared salads with
the added bonus of
portability or
consumption on the go.
Offers a quick solution
to salad preparation,
sandwiches or meal
accompaniments.
Packaged pre-prepared
salad leaves seen as a cost
efficient alternative to
loose, whole heads of
lettuce.
Important that the salad
offers variety (mix of leaves
anticipated) and basic taste
components need to be
fulfilled e.g. freshness and
range.
Gaps and Opportunities – Pre-Prepared Salads
• Innovation on pack size for prepared salad leaves may present an
opportunity for single serve portions to combat wastage and optimise
freshness.
• Dial up and enhance the health components of pre-prepared salads. Is there
scope to include seeds and superfoods to further boost health benefits? Do
not undermine the health credentials of pre-prepared salads by overuse of
dressing or mayonnaise.
• Convenience (speed of preparation) is more of a driver in the UK suggesting
on pack comms and packaging/ format will be important. Is there scope to
review “on-the-go” packs and serves that facilitate speed in this arena?
• Taste and Quality are more to the fore in ROI and leveraging the proximity
of the ingredients to consumers, thereby enhancing freshness cues, is key.
There could be an opportunity to leverage “interesting” ingredients and
different leaf types / grains / seeds etc… to boost the taste credentials of
your brand’s offer?
47
Sandwich Fillers
26th May 2014
Growing the success of Irish food & horticulture
Sandwich Fillers
49
•
Sandwich fillers seen largely as anything that can be placed inside bread
including individual food items such as processed meats to spreadable goods
including egg mayo, coleslaw, hummus etc.
•
A relatively low engagement category within the chilled food section
•
Convenience is again a key driver where consumers see the category as an
easy means to add variety and flavour to sandwiches.
•
Primarily used at lunch occasions but occasionally used as a meal
accompaniment.
•
Strong association of mayonnaise as a component ingredient adds some
unhealthy/fattening concerns.
•
The packaged and highly ‘plastic’ containers suggest more processed product.
•
Low branded recall beyond the big brands associated with mayonnaise
(Hellmann’s) mustard (Colman's) and Sauces (Heinz).
•
Availability of deli-counters range of sandwich fillers and salad
accompaniments compete directly with self contained sandwich fillers. Self
service and non sealed nature of these products benefits from more healthy
associations
Who buys Sandwich Fillers?
Skew in both markets to 30+ age cohort, more white collar target in ROI, while UK
reflects blue collar bias. This may impact on taste preferences in UK and desire
for ‘standard’ or ‘traditional’ offer.
Who are they buying for?
Differences emerge across the market with ROI more likely to reflect a family
cohort, while solo purchasing more evident in the UK.
Frequency of purchase
32%
34%
62%
4%
60%
8%
Planned habitual routine purchase apparent in both markets, with a much
lower price point evident in the UK.
Purchase Behaviour: How many Sandwich Fillers purchased
every week?
Frequent purchasing prevalent, part of a habitual ingrained routine – may prove
difficult to interrupt with this mind-set.
Occasions: When do people eat Sandwich Fillers?
Lunch dominates, not surprisingly, with some opportunity to explore fillers as
potential meal accompaniments in the UK.
What’s important when buying Sandwich Fillers?
Convenience dominates as a key influencer on purchase – speed, ease and taste are
core metrics that must be satisfied and accessible.
What's important for the consumer when choosing Sandwich Fillers?
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Does it
look
appealing?
56
What's important for the consumer when choosing Sandwich Fillers?
Minimising mayonnaise
and rich dressing in key.
Low fat is an area of
consumer interest who
still want the taste of a
sandwich without
prohibitive calorie
content
Deli counter offerings will
compete so product needs
to deliver clear advantages
e.g. value for money and
marginally better shelf life.
Is it
Convenient?
Is it (un)
healthy?
Is it
affordable?
Is it of
good
quality?
Is it Tasty?
Sandwiches are a
convenient solution in
their own right and
fillers need to
compliment this ease of
use and saving of time.
Price is a consideration as
sandwiches are cost
efficient and can’t be too
expensive so as to be
replaced by other foods
such as meat, cheese or
sauces or dressing.
Does it
look
appealing?
Needs to have substance,
texture and some
consistency.
57
Taste is very important as it
needs to stand alone or
compliment other sandwich
elements.
Gaps and Opportunities – Sandwich Fillers
• How can your product deliver advantage over the deli counter variety and range?
Dial down processed elements by packaging that cues to freshness or artisan
cues.
• Address family needs and explore more dedicated offer to children in ROI
e.g. less salt, preservative, additives and create flavours that will appeal to
younger palates. Potential to offers “lunchbox” specific offer that caters to busy
family lifestyles.
• Consumers look for variety and choice, developing new flavours beyond
traditional offerings can add a point of difference in what can be a static category.
Move beyond traditional ranges and explore different grain, vegetable, seeds and
herb mixtures.
• Increase occasionality of the category by exploring more ‘snack’ solutions
with accompanying ingredients. Provide consumers with a more multi-faceted
offer that can deliver as a “mini-meal” solution with appropriate accompaniments
e.g. baked potatoes, salads and breads that will “bulk-up” the sandwich filler
potential.
58
Thank you
Any Questions?
26th May 2014
Growing the success of Irish food & horticulture